Requirement 2: Compute 2019 net income using the December 31, 2019, ending balances. Ignore income taxes. DO NOT PREPARE A FORMAL INCOME STATEMENT. In December, 2019, Boomer Co. began business and had the following transactions: 1. Issued common stock in exchange for $60,000 cash. 2. On December 1, borrowed $100,000 from 1" Bank by issuing a 5-year, 12% note. The first annual interest payment is due on December 1, 2020 3. Paid $96,000 to purchase a building 4. Paid $1,500 for supplies 5. Purchased Inventory for $40,000 on account from OU Co. 6. Sold merchandise on account for $42,000. The cost of the merchandise sold was $18,000. 7. Paid $33,000 on account to Ou Co. & Received $2,000 from customers in advance for products to be delivered in 2020. 9. Paid $15,000 to employees for December salaries. 10. Received $25.000 from customers on account. 11. Paid $1,000 for dividends. 12. Recorded an adjusting entry for $800 depreciation on the building 13. Recorded an adjusting entry for supplies; the amount on hand at year-end was $1,200. Show computations. 14. Recorded other necessary adjusting entries, if any, for 2019. Show computations. Requirement 3: Compute the December 31, 2019, balance in Retained Earnings. Beginning Retained Earnings is $0.CLOSI ENTRIES ARE NOT REQUIRED. Requirement 1: Record the 2019 transactions in the T-accounts below AND determine the December 31, 2019, ending balances. Use the number of each transaction to identify the entries in the T-accounts as shown for transaction 1. You may abbreviate the names of account titles. You may not use every T-account. BE SURE THAT EACH ENTRY HAS A DEBIT AND A CREDIT. Cash 1. 60.000 Requirement 4: Prepare the December 31, 2019, CLASSIFIED balance sheet by including: 1) 12-31-19 ending balances in asset/contra-asset and liability accounts (use balances after adjusting entries). 2) 12-31-19 ending balances in shareholders' equity accounts. If the balance sheet does not balance, work other problems and come back to this if you have time, DO NOT USE A "PLUG" AMOUNT TO GET IT TO BALANCE! ASSETS LIABILITIES Current liabilities Current assets Common Stock 1. 60,000 Long-term liabilities Total liabilities Long-term assets SHAREHOLDERS' EQUITY Total shareholders' equity Total assets Total liabilities and shareholders' equity